MANILA, Philippines — Robinsons Retail Holdings Inc. announced Friday it would acquire a 4.4% stake in Bank of the Philippine Islands, hoping to tap the Ayala-led lender’s customer base and financial services to cross-sell products and help partially raise the listed holding firm’s capital needs.
In a disclosure to the stock exchange, Robinsons Retail said it will buy the 4.4% interest of Arran Investment Pte. Ltd. in BPI.
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Arran is an affiliate of GIC Private Ltd., a sovereign wealth fund in Singapore. Through its stake in Arran, GIC currently owns 21.9% of Liontide Holdings Inc. which, in turn, has a 20% interest in BPI.
“As part of the transaction, Arran will redeem a portion of its preferred shares in Liontide. The underlying BPI shares, representing 3.3% equity interest in BPI, will then be purchased directly by Robinsons Retail,” the Gokongwei-led firm said.
“Simultaneously, Robinsons Retail will acquire preferred shares in Liontide, which are redeemable to BPI shares, representing 1.1% of BPI outstanding shares,” it added.
Robinsons Retail made the announcement months after it approved the merger of BPI and Robinsons Bank Corp., with the former as the surviving entity. The tie-up will lead to Robinsons Bank shareholders — namely JG Capital and Robinsons Retail — collectively holding 6% of the resulting outstanding capital stock of BPI.
“Robinsons Retail will be able to tap into the extensive consumer customer base of BPI to cross-sell products and services while in turn giving Robinsons Retail suppliers the capability to tap into BPI’s vast financial products to help fund their working capital requirements as they expand their business,” the company said.
“Financially, Robinsons Retail will also receive a steady stream of dividends from one of the largest and most profitable banks in the country,” it added.
Shares in Robinsons Retail ended weekly trading up 1.33% while BPI finished with 0.80% gains.